Money Laundering: International Law and Guidance

International anti-money laundering requirements, set on a global or regional basis. Representations and training.

The Financial Action Task Force

The Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion of national and international policies to combat money laundering and terrorist financing. Its 40 Recommendations are backed by mutual evaluations of its member countries. Countries which are not members of FATF may be members of a FATF-style regional body.

For convenience, the ICAEW has extracted those Recommendations that apply to professional accountancy firms into a single document

European requirements

The European Federation of Accountants (FEE) has a Money Laundering Task Force, which coordinates AML policy for the profession across Europe, including lobbying the European Commission and FATF. FEE has issued a survey on the implementation of the Third Money Laundering Directive in September 2009, and a Fact Sheet on money laundering and the fight against organized crime in October 2003.

The Fourth EU Money Laundering Directive is currently moving through the EU legislative process.

The first reading in the (previous) European Parliament took place on 11 March 2014, when the Parliament adopted its position on the directive.

Trilogue negotiations are due to have commenced with a final Directive expected Q1 2015.

The latest draft compromise text (which will form the basis of the negotiations) can be found here.

US requirements

The United States of America has strict federal AML systems and procedures requirements on banks and certain other financial institutions, which tend to have extra-territorial effect, through requirements for US banks to control their relationships with correspondent and shell banks. As at September 2014 the AML procedures requirements of the US Patriot Act do not apply to non-financial institutions including accounting firms and law firms. Nor are these institutions required to file SAR's.

International presentations and articles

Felicity Banks, ICAEW's Head of Business Law, has contributed articles and presentations to audiences internationally.